Russian Central Bank Will Support Legislation To Ban Cryptocurrencies Due To Risk

The Bank of Russia, known as the central bank of the country, has recently offered its opinion on banning cryptocurrencies. According to it, a crypto ban is not out of question right now. If the legislative level of the government decided to ban cryptos, the bank would fully support the decision.

At the moment, the situation of cryptos in Russia is still undecided. Legislation that could clarify the status of the assets in the country was passed by legislators months ago, but some decisions are still delayed and there is no timeframe for their decision.

Unfortunately, the Bank of Russia does not view cryptocurrencies in a very positive light at all. The institution justified the idea of supporting the ban by affirming that cryptos can be significantly risky because they are often used to launder money and to finance crime and terrorism.

Also, the bank affirmed that transactions in exchanges are prone to suffer from sharp exchange rate fluctuations. This causes a lot of volatility, a sign of speculative markets, and can threaten financial stability.

In related news, Elvira Nabiullina, the chair of the bank, has recently affirmed that the Bank of Russia doesn’t see any strong reasons for the launch of national crypto like the one that is being planned by the government of China.

According to her, the risks of an asset such as this one are higher than the benefits and cryptos can be compared to gambling in casinos, as money that comes easily can also be lost easily.